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Should You Consider Buying Digital Gold In 2023?

Read this blog to understand the facts and benefits of digital gold investments, the historical performance of gold, and how to invest in digital gold by Safegold using Cube.
April 18, 2024

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Perhaps “Digital” is the most defining word of the 21st century. Due to a combination of the pandemic and technology, most companies and human relationships are now digital. So is Gold! Enter, Digital gold. 

Digital gold is becoming one of the most efficient ways of investing in physical gold due to benefits like no making charges, security, assured purity, etc.   

Let’s take a look at some facts about this investment and also see the benefits of digital gold. This will help you understand whether digital gold could be a good addition to your portfolio.

5 Facts About Digital Gold

1. Digital gold costs the same as physical gold

2. Physical and digital gold investments are taxed the same way

3. Digital gold investments can be used as collateral for an online loan

4. Digital gold can be converted into physical gold

5. GST applies to digital gold investments

3 Benefits Of A Digital Gold Investment

1. No making charges

Making charges can eat into your gold investment returns. This is where digital gold is different. If you’re an investor looking for long term returns from your gold investments and not to wear or physically own gold, digital gold could be the right investment for you. 

2. Assured Purity

Digital gold by Safegold on the Cube Wealth app comes with assured purity. Your digital gold investments are backed by actual 24 Karat Gold that is 99.99% pure (9999 purity).

3. Safe & Secure

This is perhaps the most reassuring and important aspect of digital gold investments. The gold that you invest in is stored in a safe and secure vault backed by Brinks. 

You can even withdraw the digital gold you invest in using Cube in the form of gold bars. Minting charges may apply but will be easy on the pocket compared to making charges. 

Taxes on Digital Gold Investment Returns

Many people wonder how digital gold investments are taxed. The taxes on digital gold investment returns are divided into 2 types based on the holding period. 

1. Short Term Capital Gains

If you want to sell your digital gold investment before 3 years, you’ll have to pay a Short Term Capital Gains (STCG) tax. The returns are added to your gross income. The tax rates will be according to your tax slab.  

2. Long Term Capital Gains

You’ll have to pay a Long Term Capital Gains (LTCG) tax if you sell your digital gold investments after 3 years. The LTCG tax rate is 20% (+4% cess and any surcharge) with indexation benefits.

Read more about taxation on other gold investments here. 

Historical Gold Prices Since 2016

Historical data suggests that gold does well when the markets are down and corrects itself when the markets are on a high. This is why investors choose to buy gold to hedge against inflation and other market-related concerns. 

Gold Price
Source: Google

But in general, gold is a valuable asset for the long term. Digital gold sidesteps the concerns associated with physical gold but carries the same benefits. 

Read this to know How Much of Your Portfolio Should be Invested in Gold.

How A Digital Gold Investment Works On Cube

The Cube Wealth app helps you invest in digital gold with our partner, Safegold. Here’s how the investment journey works:

1. Download the Cube Wealth app

Cube is simple and easy to use with an added layer of transparency and honesty. You will see all the important details in a clear manner. 

2. Complete your KYC

It’s paperless, straightforward and easy. Here’s a snapshot of the KYC process:

3. Click on Invest Now

Select All Investment Options and scroll down to Gold by Safe Gold. Tap on invest now. 

4. Enter the amount

Cube helps you invest in digital gold by Safegold for as low as ₹1000. You can choose to invest either one-time or via a SIP. The latest price of gold is always mentioned. 

You can then tap on confirm and pay via UPI or Internet Banking. Cube does not hold any of your payments. Your money is transferred to the vendor directly via Billdesk. 

Download the Cube Wealth app or speak to a wealth coach today to know more about digital gold by Safegold on Cube

Curious about gold investments in India? Read this in-depth guide to know more. 

Read more Gold stories by Cube Wealth:

1. 6 Best Ways To Invest In Gold In India

2. How To Buy Digital Gold Online

3. Why Is The Price Of Gold Increasing?

4. Sovereign Gold Bond (SGB) Investment FAQs

5. Tax Implications of Buying Sovereign Gold Bonds

Priya Bansal
Curious about personal finance and all things money. Can either find me reading a book or dancing to a tune.

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